Our Approach
Mitsui Kinzoku views corporate governance as one of its most important managerial tasks that Mitsui Kinzoku shall strive to improve organizational structures and systems for management, and implement various measures as necessary, based on the recognition that corporate governance is a system for making fair and transparent decisions in a rapid and decisive manner, taking into consideration the positions of the stakeholders, including shareholders, customers, employees and local communities in order to achieve Our Vision based on Our Purpose under Our Management Philosophy. Corporate governance is the foundation for sustaining the long-term value creation of Mitsui Kinzoku Group.
Revision of the compensation system for Directors
(Introduction of ESG-related indicators)
With respect to compensation, etc. for Directors (excluding Outside Directors), the Compensation Committee has decided to introduce ESG-related indicators in 2023 as a means to enable the Company to continue to contribute to society and remain an essential presence in the future.
Specifically, the Company introduced ESG index-based restricted stock compensation, which was added subject to the achievement of ESG indicators, in addition to the already introduced tenure-based restricted stock compensation. In both cases, continued service is a condition for lifting the transfer restrictions. ESG indicators are those related to the reduction of greenhouse gases, the promotion of job satisfaction and diversity and compliance.
The total amount of monetary compensation claims to be paid to eligible Directors for the granting of restricted stock shall be within ¥50 million per year as the already introduced tenure-based restricted stock compensation and within ¥50 million per year as the newly introduced ESG index-based restricted stock compensation, and the total annual amount shall be within ¥100 million. In addition, the total annual number of the Company's common shares to be issued or disposed of shall be 16,650 shares or less per year as tenure-based restricted stock compensation and 16,650 shares or less per year as ESG index-based restricted stock compensation, totaling a maximum of 33,300 shares per year.
Corporate Governance